Rich Jacoby: A Complete Guide to Gold IRA Costs, Risks and Rules

Gold IRAs are heavily advertised, but the actual mechanics are often left unexplained.

What exactly is a Gold IRA? Which retirement accounts can be moved into one? Where is the metal stored? What does it cost? Can you keep the gold at home? And what happens when you're eventually ready to sell?

To answer those questions, IncomeInsider TV host Sam Laliberte sat down with Rich Jacoby, founder and CEO of GoldenCrest Metals, for a start-to-finish discussion of how Gold IRAs work.

If you're considering physical precious metals as part of your retirement plan, this is the episode to watch.

The full interview is embedded below. For readers who prefer to skim the highlights, we've also broken down the major points from the conversation.

What Is a Gold IRA?

Despite the name, a Gold IRA isn't an entirely different type of retirement account.

It's generally a self-directed IRA that allows certain physical precious metals to be held within the retirement account.

That makes it different from buying shares of a gold ETF or purchasing stock in a gold mining company.

Jacoby explained that with a Gold IRA, the underlying asset is actual physical metal that is purchased and then stored at a third-party precious-metals depository.

There are typically several parties involved:

• A precious-metals dealer handles the purchase of the gold or silver.
• A self-directed IRA custodian administers the retirement account.
• A depository receives and stores the physical metals.

Understanding those separate roles is one of the first steps in understanding how Gold IRAs work.

Why Would Someone Hold Gold in a Retirement Account?

Most retirement portfolios already include assets such as stocks, bonds, mutual funds and ETFs.

So why add physical gold?

Jacoby said many customers are looking for additional diversification and exposure to an asset that behaves differently from traditional securities.

Importantly, he said GoldenCrest generally does not encourage customers to move their entire retirement account into precious metals.

Instead, he described gold and silver as potential components of a broader retirement strategy.

That distinction matters.

Owning precious metals does not require abandoning stocks, bonds or other assets. Someone can hold physical gold while maintaining the rest of their retirement portfolio elsewhere.

Jacoby also emphasized that precious metals should generally be viewed as a longer-term holding rather than a way to generate quick returns.

Related: Download Rich Jacoby's "Ultimate" Gold IRA Rollover Guide.

How Does a Gold IRA Rollover Work?

Jacoby walked through an example involving someone with an old 401(k) who wants to move part of that account into physical gold.

The process generally begins by determining whether the retirement funds are eligible to move.

Once the self-directed IRA is established, retirement funds can be transferred to the IRA custodian.

The customer then chooses the precious metals they want to purchase.

After the transaction is approved and funded through the custodian, the precious-metals dealer purchases the metals and sends them to the depository.

GoldenCrest currently uses Delaware Depository for storage, according to Jacoby.

Once the metals arrive, they are recorded and associated with the customer's retirement account.

The important takeaway is that the dealer does not simply take control of the customer's retirement account.

The dealer, custodian and depository are separate entities performing different jobs.

Which Retirement Accounts Can Be Moved Into a Gold IRA?

Jacoby said several types of retirement accounts may potentially be moved into a self-directed IRA, including:

• Traditional IRAs
• 401(k) plans
• 403(b) plans
• SEP IRAs
• Thrift Savings Plan accounts

Whether funds are actually available for rollover can depend on the specific account and the person's employment situation.

For example, money held in a retirement plan with a former employer may be treated differently from funds still held in a current employer's plan.

Jacoby also discussed age-related considerations during the interview.

Because retirement-plan rules vary, consumers should verify eligibility with the account administrator or custodian before assuming their funds can be moved.

Will a Gold IRA Rollover Trigger Taxes?

One of the biggest concerns surrounding any retirement rollover is accidentally creating a taxable distribution.

The basic idea is that when retirement funds are moved correctly from one qualified retirement structure to another, the money generally remains inside the retirement system rather than being treated as personal income.

Problems can arise when funds are distributed directly to the account holder or deadlines and rollover rules are not followed correctly.

Jacoby said GoldenCrest generally works through the custodian rather than having retirement money sent directly to the customer.

Tax treatment can depend on the specific account and transaction, so anyone considering a rollover should verify the process with the custodian and consult a qualified tax professional when necessary.

What Kind of Gold Can You Buy Inside an IRA?

A Gold IRA doesn't mean you can purchase any gold item you happen to like.

Certain precious-metals products can qualify for IRA ownership, while collectibles and other products may not.

During the interview, Jacoby discussed products such as:

• American Gold Eagles
• American Gold Buffalos
• Gold proofs
• Other recognized IRA-eligible precious-metals products

He also noted that the term Gold IRA is somewhat misleading because these accounts may also hold eligible silver and other precious metals.

In other words, a Gold IRA doesn't necessarily have to contain only gold.

Spot Price Is Not the Price You Pay

One of the most important parts of the interview dealt with pricing.

Consumers can pull up the spot price of gold online within seconds.

But that is not necessarily the price they will pay for a physical gold coin or bar.

Physical precious metals are generally sold at a premium above spot.

That premium can vary depending on:

• The specific coin or bar
• Availability
• Market demand
• Product type
• Dealer pricing

Jacoby emphasized that consumers should shop around and ask dealers direct pricing questions before agreeing to a purchase.

Related: Diversify Your Savings with Physical Gold (Free Download)

Questions to Ask a Gold Dealer Before Buying

Jacoby suggested that consumers should understand several numbers before completing a precious-metals purchase.

Among the questions worth asking:

What is the current spot price?

What is the exact price you're charging me for this coin or bar?

What is your spread?

What is your buyback policy?

The spread becomes especially important because the customer eventually needs to sell the metal.

A person might see the market price of gold rise substantially and still be disappointed with the resale value if they originally paid a very large premium.

That's why the initial purchase price and eventual buyback price need to be considered together.

Two People Can Spend the Same Amount and Get Different Amounts of Gold

This is a point that often gets overlooked.

Two customers could each spend $50,000 on precious metals and end up owning very different amounts of actual gold.

Why?

Because different products can carry very different premiums.

A widely traded bullion product may have a different markup than a specialty or premium-mintage coin.

The higher the premium, the less of the purchase price is going directly toward the underlying metal value.

That doesn't automatically make a higher-premium product a bad purchase, but consumers should understand exactly what they're paying for.

Ask About the Buyback Price Before You Buy

Consumers tend to focus heavily on the purchase price.

But the eventual selling price is just as important.

A useful question to ask a dealer is:

If I bought this exact product from you today and immediately sold it back, what would you pay me?

That gives the buyer a clearer picture of the round-trip spread.

The larger the difference between the purchase price and the dealer's current buyback price, the more the underlying metal price would generally need to rise before the customer breaks even.

Jacoby said consumers should understand a dealer's buyback policy before making the initial purchase.

How Much Does a Gold IRA Cost?

Gold IRAs can involve expenses that don't exist in a standard brokerage IRA.

Those may include:

• Custodian fees
• Storage fees
• Account administration fees
• The dealer premium built into the metal purchase

Jacoby said GoldenCrest currently works with multiple custodians that have different fee structures.

He also explained that IRA storage and custodial charges can sometimes be structured as flat fees rather than percentages of the account balance.

That means account size can matter.

A $200 annual fee is relatively small on a large account but represents a much larger percentage of a small account.

Related: Gold IRA Fees Explained

GoldenCrest's Gold IRA Minimum

During the interview, Jacoby said GoldenCrest currently uses a $25,000 minimum for new Gold IRA accounts.

He said the company arrived at that figure partly because of the administrative work involved and because smaller account sizes can make the overall economics less attractive.

The IRA custodian itself may have different minimum requirements.

Jacoby also noted that GoldenCrest may make exceptions in certain situations involving existing customers.

What Does “Free Gold” or “Free Silver” Really Mean?

Precious-metals companies frequently advertise promotions involving free metals or waived fees.

GoldenCrest currently offers promotional silver on certain qualifying purchases, Jacoby said.

As with any promotion, consumers should look beyond the word “free” and evaluate the entire transaction.

That means understanding:

• The product being purchased
• The premium being charged
• The dealer's spread
• The value of the promotional metals
• The eventual buyback process

A promotion may add value, but it shouldn't replace basic price comparison.

Where Is Gold IRA Metal Stored?

IRA-owned precious metals generally aren't shipped to the customer's house.

Instead, they're stored with a precious-metals depository.

Jacoby said GoldenCrest uses Delaware Depository.

He described an intake process in which incoming metals are verified before being stored and reported back through the custodial structure.

The customer then has documentation showing the metals held in the account.

Jacoby also said customers may arrange to visit Delaware Depository and view their holdings.

Related: How to Add Physical Gold to Your IRA or 401(k)

Segregated vs. Commingled Storage

Gold IRA customers may come across two terms when researching storage:

Segregated storage and commingled or non-segregated storage.

These terms describe how metals are stored within the depository.

The precise structure and costs can vary depending on the depository and account arrangement.

Consumers should ask what type of storage they are receiving, whether there is an additional charge, and what happens when they eventually request a sale or distribution.

Read more: Segregated vs Commingled Storage - What's the Difference?

Can You Keep Gold IRA Metals at Home?

This is one of the most common Gold IRA questions online.

Jacoby's answer was straightforward: GoldenCrest does not ship IRA-owned metals directly to customers for home storage.

He distinguished IRA-owned metals from ordinary physical gold purchased with cash.

Someone can buy gold personally and decide to keep it at home.

The issue is whether those metals are supposed to remain inside a tax-advantaged retirement account.

There are companies and websites promoting so-called home storage Gold IRA structures, often involving LLCs or checkbook control.

Because the tax and legal issues surrounding those arrangements can be complicated, anyone considering one should speak with an appropriate tax or legal professional rather than relying solely on promotional material.

How Do You Know the Gold Is Really Yours?

Sending retirement funds to a custodian and having gold stored hundreds of miles away understandably raises another question:

How do you know the metal is actually yours?

Jacoby said customers receive account records and invoices documenting the metals purchased.

He also explained that the account exists in the customer's name rather than the dealer's name.

That becomes particularly important if the precious-metals company that originally sold the gold ever closes.

What Happens If the Gold Dealer Goes Out of Business?

Sam asked Jacoby directly what would happen if GoldenCrest Metals hypothetically ceased operating.

Jacoby explained that the customer's IRA metals are not simply corporate property belonging to GoldenCrest.

The custodian and depository exist separately from the dealer.

In other words, a customer does not lose ownership of IRA-held metals simply because the original dealer is no longer operating.

That separation between the dealer, custodian and depository is one of the more important structural protections consumers should understand.

How Do Gold IRA Buybacks Work?

Eventually, someone may want to sell some or all of their metals.

Jacoby said customers are not necessarily required to sell their precious metals back to the company that originally sold them.

GoldenCrest may also purchase metals from people who originally bought through other dealers.

However, he generally recommends understanding the original dealer's buyback policy because that can affect how much value the customer receives when liquidating.

GoldenCrest says it seeks bids from wholesalers when determining what it can pay for metals during a buyback.

Again, the important lesson for consumers is to ask about the eventual sale before completing the initial purchase.

Related: Download GoldenCrest Metals' Free Gold IRA Guide

What About Required Minimum Distributions?

Eventually, retirement-account rules may require distributions.

The interview briefly discusses required minimum distributions, or RMDs, and how money may eventually need to come out of the retirement account.

Tax treatment can depend on factors such as the type of IRA, the account holder's age, and how the distribution occurs.

Jacoby appropriately declined to go deeply into individual tax consequences during the interview, noting that those questions belong with an accountant or tax professional.

What Are the Downsides of a Gold IRA?

Gold IRAs aren't appropriate for everyone.

Sam asked Jacoby to make the case against his own product and identify situations where someone may want to think twice.

Among the issues discussed:

Gold doesn't pay dividends

Physical gold does not generate dividend income like some stocks.

Gold doesn't pay interest

There is no coupon or interest payment simply for holding the metal.

Gold IRA accounts have ongoing costs

Custodial and storage fees add expenses that may not exist with ordinary brokerage accounts.

There are spreads when buying and selling

A customer's purchase price will generally be higher than the price at which the same metal could immediately be sold.

Gold prices can decline

Precious metals are not guaranteed to rise.

Liquidity matters

Jacoby said someone who is short on cash, needs to borrow money, or may need access to the funds soon may not be a good candidate.

GoldenCrest also says it does not encourage people to take out loans to purchase precious metals.

Beware of High-Pressure Gold Sales Tactics

One of the strongest sections of the interview focused on red flags.

Jacoby said consumers should be cautious when a salesperson creates artificial urgency.

Examples might include:

• “You have to buy today.”
• “This price won't be available tomorrow.”
• Fear-based economic predictions
• Pressure to make a decision before researching alternatives
• Avoiding direct questions about pricing
• Failing to clearly explain the spread or buyback policy

Jacoby's advice was simple:

Do your homework and don't rush.

Gold and silver prices move, but that doesn't mean someone needs to make a major retirement decision during a single phone call.

Why Rich Jacoby Started GoldenCrest Metals

After spending most of the interview discussing Gold IRAs broadly, Sam asked Jacoby about GoldenCrest Metals specifically.

Jacoby said he studied customer complaints and reviews involving other precious-metals companies when developing the business.

He wanted GoldenCrest to operate differently, particularly when it came to transparency and customer service.

Jacoby described GoldenCrest as more of a boutique precious-metals company rather than a business trying to become the largest dealer in the industry.

“I don't want to be the biggest. I just want to be the best.”

He also said he remains personally involved with customers when necessary and that the company tries to ensure spouses or partners are comfortable before a major retirement transaction moves forward.

>> Claim Your Free Info Kit from GoldenCrest Metals Today. 

The Biggest Takeaway Before Opening a Gold IRA

The core structure of a Gold IRA isn't particularly difficult to understand.

A self-directed IRA holds eligible physical precious metals.

A custodian administers the retirement account.

A depository stores the gold or silver.

The more important questions involve what happens around that structure.

Before opening an account, understand:

• What metal you're buying
• What you're paying for it
• How much you're paying above the underlying metal value
• What the dealer's spread is
• What the custodian charges
• What storage costs
• Where the metal is being held
• What the dealer's buyback policy is
• What you could receive if you sold
• Whether you have enough liquidity elsewhere
• Whether precious metals make sense within your broader retirement strategy

And perhaps most importantly, don't make a retirement decision because a salesperson convinced you that something terrible will happen if you don't act today.

Research the company.

Compare pricing.

Ask questions.

And understand the transaction before moving your retirement savings.

Learn More About GoldenCrest Metals

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